Sitting on excess electronic components? Discover the difference between Consignment and Outright Purchase and how to choose the solution that maximises your returns, optimises your warehouse, and supports a sustainable supply chain.
The warehouse problem no one talks about
Somewhere in your facility, space is being wasted.
This waste is not by broken machinery or by an inefficient production line. It is caused by components. Rows upon rows of excess and obsolete (E&O) electronic parts that once held real value, now gathering dust on shelves, silently eating into your bottom line.
The average electronic manufacturing company holds approximately 10% of its annual revenue in E&O stock. For a large OEM or EMS, that figure is a significant sum of capital, frozen in components that no longer contribute to production, profit, or progress.
The question begs; do you sell quickly and cut your losses? Do you hold on and hope for better returns? And if you do decide to sell, how?
Your two primary options in solving it are Consignment and Outright Purchase.
Consignment: patience rewarded
Think of Consignment as releasing your inventory without surrendering ownership.
Your excess components are uplifted, often within 24 hours, and stored locally with our DSV partners. Component Sense then manages, markets, and sells your stock across a network of 4,500+ international brokers connected to OEM and EMS companies worldwide.
Components are listed as ‘in stock’ rather than ‘available’, a subtle distinction that increases the likelihood of a sale. And most importantly, ownership remains with you throughout.
On average, Component Sense’s Consignment solution generate five times the income of an outright sale, with recovery rates of 70% of market value.
Who is Consignment best for? OEMs and EMS companies with sizeable E&O inventory who can afford a longer timeline in exchange for substantially higher returns. When excess components represent hundreds of thousands, or millions, in costs, the patience required is almost always worthwhile.
Outright purchase: speed above all
Outright Purchase is Component Sense’s quick and easy solution. Submit your inventory list, receive a bid within 24 hours, and have your components uplifted and paid for within 48 hours. Unlike traditional brokers who cherry-pick the most valuable parts and leave manufacturers to handle the rest, Component Sense commits to purchasing your entire stock.
The return for outright purchase typically ranges from 5-10% of component cost. It is a more modest financial outcome than consignment, but speed and simplicity carry value of their own.
Who is outright purchase best for?
Manufacturers under time or resource pressure: those approaching financial year-end who need to clear E&O from the balance sheet quickly, or smaller OEMs and EMS companies who want a single, clean transaction with no ongoing involvement.
How Component Sense helps you choose
Component Sense has operated as a trusted redistribution partner for OEMs and EMS companies worldwide since 2001. With unique systems, 4,500+ broker relationships, and over two decades of market knowledge, the team ensures excess stock is sold for the best possible price.
The results speak for themselves. Corning implemented Component Sense’s InPlant solution in 2022 and recovered £1.55 million across 2.5 million redistributed components, with 74% year-on-year growth in returns the following year.
The right solution depends on your volume, timeline, cash flow needs, and appetite for ongoing involvement. Component Sense works with you to understand those factors before making a recommendation.
Are you an electronic manufacturer looking for effective ways to manage your excess and obsolete inventory?
Speak to the team at Component Sense.
